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South African private equity firm Capitalworks has secured a $15 million commitment from Proparco, the private-sector financing arm of the French Development Agency (AFD).
The funding is for the fourth private equity fund managed by the South African investment firm. The Paris-based development finance institution said the capital injection is designed to support the growth of mid-sized companies in South Africa, contributing to economic development, job creation and the mobilisation of private capital.
“South Africa has one of the continent’s most dynamic private sectors, with mid-sized companies playing a vital role in driving economic growth and job creation. By investing in Capitalworks IV, Proparco is reinforcing its long-term commitment to the region and supporting a local fund manager with the expertise to help promising businesses scale, strengthen their resilience and deliver lasting economic impact,” said Johann Choux, Regional Director for Southern Africa and the Indian Ocean, Proparco.
Formed by a team of investment professionals with backgrounds in principal investing, asset allocation and corporate finance in 2006, Capitalworks is set out to build an independent, professional alternative asset management business focused on Sub-Saharan Africa and emerging markets.
Its platform today spans several units, including Capitalworks South Africa, which focuses on private equity investing in the local market; Africa Capitalworks, which targets the Sub-Saharan mid-market outside South Africa; Venture Capitalworks, which backs high-growth businesses in financial services, education and health; and Sephira Investment Advisors, which invests in publicly traded emerging-market equities.
The firm says it today manages more than $1 billion on behalf of a diverse range of domestic and international investors.
According to Proparco, Capitalworks IV will invest primarily in high-potential local businesses, providing them with the capital and strategic support needed to accelerate their growth and long-term resilience.
The French development finance institution projects that the investment will contribute to the creation of more than 2,150 jobs, generate value for the businesses involved, and help mobilise additional private capital, thereby amplifying its overall development impact.
The transaction forms part of Proparco’s 2023–2027 strategy, which identifies South Africa as a key market and aims to foster the development of dynamic private sector champions capable of driving sustainable economic growth across the region.
Proparco said the deal reaffirms its commitment to strengthening local financial ecosystems by backing an established African fund manager with a strong track record in the South African market.
